Question about Car Payments

My Dh and I are currently financing a 2004 Volkswagen Passat. It has 22,000 miles on it. Yesterday, we went to look at the 2006 Passat. At max, i would put 10,000 miles on a year. The only reason that our previous car had more is because during the summer, my dh had to take it to work, because his car was not reliable (i teach, so that was fine). The man at the dealership was telling me that I should lease a car (we were considering this beforehand). My trade in for my car would be about $2000 less than what our payoff is. That would roll over to the lease. Now, the lease would be about $10 less than what we pay now. Our current interest rate is 1.9%, the lease interest rate would be 4.9%.

I am so confused over what to do. I love my car now, so its not like I WANT to get rid of it ( i also like the new one, so it really wouldnt matter) but I dont know if it is in our best interest to trade it in and lease, or to just stay with our car that we finance.

Any advice is greatly appreciated. I am really confused with all of this. Thanks!!!

Re: Question about Car Payments

I say keep the car you are financing. You will own this car after the payments are up, a lease you will not. It doesn't seem like there's any big reason to NOT keep the current car.

Re: Question about Car Payments

I wouldn't roll in negative equity into a new car loan whether a lease or not. It means that you are still paying off the $2000 plus the new car. If anything, try to sell your car privately for what is left on the loan.

Re: Question about Car Payments